Customer Retention: Who’s Got The Goods?
Obtaining new business is an important part of building and sustaining a business, but retaining customers is just as important, if not moreso. Many companies are guilty of spending lots of time and effort on getting those new customers in the door, but they often forget to maintain, thank, and take care of the customers that enable them to stay in business.
Sometimes we need to be reminded of the basic things that keep our customers happy. Here’s a refresher:
- Build the relationship and make it personal: Take the time to really get to know your customers. Target your most loyal customers and send them specials or updates pertaining to the items/services they use most. It’s pretty likely they will share their story with a friend or colleague who will appreciate the effort to customize their experience. Suddenly one wildly loyal fan turns into two.
- Stay in touch: Don’t get too comfortable with your customers; you never know who’s lurking in the shadows seeking their business. Always make it a point to reach out, by phone if possible, to make sure all is well, learn more about their business, and find more ways to provide value for their investment with your company.
- Putting out the fires: It’s inevitable - problems will arise. It’s how quickly, sincerely, and effectively you solve the problem that will show your customer how truly committed you are. Taking quick, decisive and caring action will solidify your relationship.
Here’s a real-world example I have experienced. In most “big box” fitness centers you are simply a number. No one knows your name and you get the distinct feeling they also just don’t care to know you; that really irritates me. Even more irritating, whenever there’s an issue, you are redirected to the allusive corporate office line, which no one ever seems to answer.
So I finally left the corporate facility and joined a family owned place, in which every single employee already knows my name. Every time I walk in I am greeted by name, I am also given a farewell by all employees at the desk. The other day a new trainer appeared and because we hadn’t yet met, he went out of his way to extend a greeting and ask for my name. As I left that day the associate (from the back of the gym) yelled up at me, by name, to have a great day. Now you may be thinking that it’s not too hard to remember a few member names, but these people greet everyone by name, all the time.
They have the goods…
The Giants, Patriots, or Pizza Delivery - who will deliver?
On Sunday, February 5th, the New York Giants and New England Patriots will face off in the Super Bowl and fans across the country are hoping they deliver. Many of those same fans will also be counting on their favorite pizza chain to deliver a hot fresh pizza in time for the game. Papa Johns, the Official Pizza Sponsor of the NFL, set a single-day sales record last year on Super Bowl Sunday! Domino’s predicts they will deliver over 1 million pizzas this year and Pizza Hut is forecasting more than 2 million. How many of those pizzas will make it to their destination on time and most importantly, prepared correctly? Most leading pizza chains ramp up their staff, ingredients, and marketing to handle the high demand of Super Bowl Sunday. They should also be ramping up their customer feedback. I’ve heard businesses state, “that’s the busiest day of the year and I don’t need you to tell me that we are bad.” The unfortunate part of that statement is that fans have zero chance of changing the outcome of the game, but they have many options to change the outcome of their pizza delivery.
Pizza chains may not be able to react to the feedback in time to make changes this year (although social media is changing this quickly), but they can use the feedback when planning for the next Super Bowl. Pizza is the number one food of choice at game time and that represents a massive opportunity every single year. If you don’t get it right this year, you can always make adjustments and capitalize next year. That is, as long as you don't treat your customers "too" poorly, and hope they come back to you instead of a competitor next year. Plan a targeted feedback campaign with a focus on keeping core customers happy or wowing the fringe or first time customer.
The Last Mile
New York Times bestselling author Ramit Sethi sums up his article about “the last mile” by referencing the peak-end rule: “…we judge out past experiences almost entirely on how they were at their peak (pleasant or unpleasant) and how they ended. Virtually all other information appears to be discarded, including net pleasantness or unpleasantness and how long the experience lasted.”
Sethi wrote about the last mile nearly five years ago and his thoughts are even more relevant today. The importance of the last mile – “the last point of contact to a customer” – truly cannot be overstated, and failure at the last mile can be exponentially more expensive to correct than maintaining last mile excellence.
Best Buy must have learned this lesson the hard way. While Best Buy stores may be meticulously designed and stocked, customer service was not considered a strongsuit. For the better part of a decade, customers ranted about Best Buy’s failure at the last mile in droves using websites like BestBuySux.org. At the time Sethi wrote about the last mile, “BestBuySux.org” was still in the top Google search results when searching for “Best Buy.” As Sethi points out, “without logistics, Best Buy wouldn’t have products to sell in the first place,” but Best Buy certainly paid for its failures at the last mile.
Best Buy’s most recent negative publicity came after cancelling a number of online orders days before Christmas (one full month after orders were placed around Black Friday). Here, Best Buy learned from their previous failures at the last mile and made the most out of a logistical issue. After cancelling less than 1% of orders, Best Buy reached out to the effected consumers to apologize and offer electronic gift cards. This action proves that Best Buy now understands that while all errors cannot be prevented, that last point of contact is oftentimes more important in the eyes of the consumer than the original error.
Few will argue with the fact that customer service is important, but just how important can often go overlooked when focusing on the other aspects of doing business.
Read Ramit Sethi’s article here (http://www.iwillteachyoutoberich.com/blog/the-failure-of-the-last-mile/) for more examples of success and failure at the last mile and read more about Best Buy’s order cancellations here (http://bits.blogs.nytimes.com/2011/12/23/best-buy-black-friday/).
The Greatest Fast Food Experience Ever
I LOVE Chipotle. Fresh food, always tastes great, local ingredients, friendly people, controlled chaos behind the counter. I eat there 2-4 times/week, and have literally never had anything close to a bad experience. Many have just been "to expectations". It's tough to serve that many people, in a "fast food" restaurant, and deliver a consistently great experience, right? However, today's was, truly, an Experience. My best ever at a "fast food" restaurant. Why the quotation marks? Read on.
My schedule was packed today, and it looked like the only time to get my Chipotle on was going to be around 12:15-12:30pm; I knew they would be absolutely slammed at that time. My mind flashed to the special parking space right in front of the door for customers who order via fax or online; I also remembered the special window inside where you can bypass the ordering line. So, I decided to order online with them for the first time.
Cool website! My eye immediately went to "Look Out! There's a Burrito in your iPhone!" Fun. Quick-click instructions on how to order if it's "your first time flying with Chipotle". Interesting stories. I feel cool. Part of the tribe as Seth Godin would say. Easy registration, very easy to order. In and out of the site in less than 5 minutes. Spectacular. I'm hooked. You had me at Click. Gotta try the iPhone app next time.
Drove to pick it up, and, Yes!, my space was available. Arrived about 12:35pm, ridiculously long line. No worries, I get to go right to the window, where there's no line! I feel special. Superior. Just a little guilty. A friendly associate asks with a smile and a really sincere tone if she can help me. I tell her I have an order to pickup. "Are you Ron?" Wow! Well, yes, I am, and now I feel wanted! You care about me. Where am I again? She pulls my order, already prepared and in the bag, from something that looks like a dorm fridge, but is obviously used to keep it warm. Another friendly, smiling, sincere person verifies my credit card payment (originally given when I ordered online), gives me a receipt and a smile, wishes me well, and tells me that she hopes I enjoy it and that she sees me again this weekend. Though I'm very happily married, I can't resist, and promise to see her again this weekend.
Back at my desk, the order was still really warm and perfectly prepared with my custom requests. Yummy. I'm satisfied. Truly. After a couple meetings away from my desk, I check my cell phone and see a voice mail from an unknown number, left at 2:38pm. I listen to a message from Jessica from Chipotle, who sounds very nice, like she actually cares whether my order turned out OK, and asks if I would please call her back to give some feedback. How can I resist?
When I phone the store, Tori answers on the first ring, and actually sounds disappointed that Jessica isn't there to help me immediately. She asks very politely if I can hold for just a minute, and then goes to find Jessica. Less than a minute later, Jessica asks how everything was. I'm gushing at this point; I can't possibly do this experience justice in the short time we'll have together on this call. But I try. She replies with an enthusiastic "awesome", and makes me feel like I've made her day. She thanks me, and says how much she too hopes to see me again this weekend. While I hate the thought of dividing my attention this weekend between these ladies, again, I can't resist, and promise to see Jessica again as well.
"Fast food"? Hardly.
A Great Quote
I read a great quote today from Seth Godin: "The problem with the race to the bottom is that you might win."